Jerash Holdings(JRSH) - 2026 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Financial Statements This section presents the unaudited condensed consolidated financial statements for Jerash Holdings (US), Inc. and its subsidiaries, including balance sheets, statements of operations, changes in equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, and specific financial line items Condensed Consolidated Balance Sheets The balance sheet shows a slight decrease in total assets and total liabilities from March 31, 2025, to June 30, 2025. Cash significantly decreased, while accounts receivable increased, reflecting changes in operational cash management and collection timing | Metric | June 30, 2025 ($) | March 31, 2025 ($) | | :-------------------------- | :-------------- | :--------------- | | Total Assets | $81,739,077 | $82,975,526 | | Cash | $5,796,830 | $13,346,791 | | Accounts receivable, net | $9,979,463 | $3,076,074 | | Total Current Liabilities | $18,751,869 | $19,818,770 | | Total Equity | $62,789,975 | $62,869,109 | Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) The company reported a net profit of $0.32 million for the three months ended June 30, 2025, a significant improvement from a net loss of $1.37 million in the prior year. This turnaround was driven by a substantial increase in gross profit and a shift from operating loss to operating income, despite a slight decrease in overall revenue | Metric | 3 Months Ended June 30, 2025 ($) | 3 Months Ended June 30, 2024 ($) | Change (YoY) | | :------------------------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Revenue, net | $39,629,308 | $40,935,716 | (3.2%) | | Cost of goods sold | $33,540,428 | $36,295,845 | (7.5%) | | Gross Profit | $6,088,880 | $4,639,871 | 31.2% | | Income (Loss) from Operations | $958,996 | $(828,808) | 215.6% | | Net profit (loss) | $323,630 | $(1,366,697) | 123.6% | | Basic and diluted EPS | $0.03 | $(0.11) | 127.3% | Condensed Consolidated Statements of Changes in Equity Total equity experienced a minor decrease from March 31, 2025, to June 30, 2025, primarily influenced by dividend payments, which were partially offset by the net profit generated during the period and stock-based compensation expenses | Metric | June 30, 2025 ($) | March 31, 2025 ($) | | :------------------------------------------------- | :-------------- | :--------------- | | Total Equity | $62,789,975 | $62,869,109 | | Dividend payments (3 months ended June 30, 2025) | $(634,997) | N/A | | Net profit (loss) attributable to Common Stockholders (3 months ended June 30, 2025) | $318,676 | N/A | Condensed Consolidated Statements of Cash Flows The company experienced a net decrease in cash and restricted cash of $7.56 million for the three months ended June 30, 2025, a significant increase from the $1.06 million decrease in the prior year. This was primarily driven by increased cash used in operating activities and investing activities, while financing activities shifted from providing cash to using cash | Metric | 3 Months Ended June 30, 2025 ($) | 3 Months Ended June 30, 2024 ($) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(6,478,515) | $(2,200,948) | | Net cash used in investing activities | $(714,919) | $(386,965) | | Net cash (used in) provided by financing activities | $(378,710) | $1,516,001 | | Net decrease in cash and restricted cash | $(7,562,415) | $(1,062,995) | | Cash and restricted cash, end of period | $7,501,624 | $12,973,872 | Notes to Unaudited Condensed Consolidated Financial Statements These notes provide detailed explanations of the company's organizational structure, significant accounting policies, recent accounting pronouncements, and specific financial statement line items, offering crucial context for the condensed consolidated financial statements NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Jerash Holdings (US), Inc. is a holding company with manufacturing and trading subsidiaries primarily in Jordan and Hong Kong, focused on producing customized ready-made sportswear and outerwear. The company is terminating operations for one joint venture (J&B) while planning a significant $29.9 million investment in a new fabric facility in Jordan through another joint venture (Jerash Newtech) - Jerash Holdings is a holding company; its subsidiaries are primarily in Jordan (manufacturing) and Hong Kong (support, trading, joint ventures), engaged in manufacturing and exporting customized ready-made sportswear and outerwear[19][25][30] - J&B International Limited (51% owned joint venture) approved termination of business operations and dissolution, expected to complete by April 2027[27] - Jerash Newtech (51% owned joint venture) plans to invest approximately $29.9 million to establish a fabric facility in Jordan[28] NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note outlines the company's accounting policies, including U.S. GAAP compliance, consolidation principles, and specific treatments for assets, liabilities, revenue, and expenses. It highlights the company's primary business as manufacturing outerwear and details exposure to credit, customer, and geopolitical risks, including a contingency plan for production relocation - The company's unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information[31] - Revenue is primarily derived from product sales of customized ready-made outerwear, with performance obligations typically satisfied upon shipment[49] - The company is exposed to credit risk from cash deposits in Jordan, China, and Hong Kong, and from accounts receivable[67] - Customer concentration: For the three months ended June 30, 2025, two customers accounted for 63% and 12% of total revenue, respectively[69] - Operational risks include political, economic, and legal environments in Jordan, foreign currency fluctuations, and recent conflicts in the Middle East. A contingency plan for production relocation is in place, approved by major customers, in case of port disruptions[71][72] NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS The company is currently evaluating the potential impact of two new FASB ASUs: ASU 2023-09, which modifies income tax disclosures, and ASU 2024-03/2025-01, which requires disaggregation of income statement expenses - ASU 2023-09 (Income Taxes): Requires disaggregated effective tax rate reconciliation and income taxes paid information, effective for annual periods beginning after December 15, 2024[73] - ASU 2024-03/2025-01 (Expense Disaggregation): Requires disclosure of inventory purchases, employee compensation, depreciation, amortization, and depletion in expense captions, effective for annual periods beginning after December 15, 2026[74] NOTE 4 – ACCOUNTS RECEIVABLE, NET Accounts receivable, net, significantly increased to $9.98 million as of June 30, 2025, from $3.08 million as of March 31, 2025, with no allowances for credit loss recorded in either period | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :------------------------ | :-------------------- | :-------------------- | | Trade accounts receivable | $9,979,463 | $3,076,074 | | Less: allowances for credit loss | - | - | | Accounts receivable, net | $9,979,463 | $3,076,074 | NOTE 5 – INVENTORIES Total inventory slightly decreased to $27.32 million as of June 30, 2025, from $27.70 million as of March 31, 2025. This change was driven by a decrease in raw materials and work-in-progress, partially offset by an increase in finished goods, with 99.9% of inventory backed by actual orders | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :---------------- | :-------------------- | :-------------------- | | Raw materials | $7,834,974 | $13,101,508 | | Work-in-progress | $2,116,717 | $2,888,090 | | Finished goods | $17,365,335 | $11,715,231 | | Total inventory | $27,317,026 | $27,704,829 | - As of June 30, 2025, 99.9% of the company's inventory was arranged based on actual orders received[76] NOTE 6 – ADVANCE TO SUPPLIERS, NET Advances to suppliers, net, increased to $6.98 million as of June 30, 2025, from $6.64 million as of March 31, 2025, with no allowances for impairment recorded in either period | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :--------------------- | :-------------------- | :-------------------- | | Advance to suppliers | $6,983,612 | $6,644,194 | | Less: allowances for impairment | - | - | | Advance to suppliers, net | $6,983,612 | $6,644,194 | NOTE 7 – LEASES The company maintains 37 operating leases for manufacturing facilities, offices, and staff dormitories. Both operating lease right-of-use assets and liabilities decreased from March 31, 2025, to June 30, 2025, with a weighted average remaining lease term of 1.4 years and a discount rate of 6.25% | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :-------------------------------- | :-------------------- | :-------------------- | | Operating lease right of use assets | $712,723 | $850,172 | | Total operating lease liabilities | $533,999 | $627,226 | | Weighted average remaining lease term | 1.4 years | 1.6 years | | Weighted average discount rate | 6.25% | 6.25% | - Total operating lease expenses were $0.58 million for the three months ended June 30, 2025, a decrease from $0.65 million for the same period in 2024[80] NOTE 8 – PROPERTY, PLANT, AND EQUIPMENT, NET Property, plant, and equipment, net, slightly decreased to $24.91 million as of June 30, 2025, from $25.02 million as of March 31, 2025. Depreciation and amortization expenses increased year-over-year, reflecting ongoing asset utilization | Metric | As of June 30, 2025 ($) | As of March 31, 2025 ($) | | :-------------------------------- | :-------------------- | :-------------------- | | Property, plant, and equipment, net | $24,912,364 | $25,023,681 | - Depreciation and amortization expenses were $0.74 million for the three months ended June 30, 2025, compared to $0.61 million for the same period in 2024[82] NOTE 9 – EQUITY The company had 12,699,940 shares of common stock outstanding as of June 30, 2025. A cash dividend of $0.05 per share was declared and paid during the quarter. Jordanian and PRC subsidiaries are required to make appropriations to statutory reserves, which are not available for dividend distribution - Common stock outstanding: 12,699,940 shares as of June 30, 2025, and March 31, 2025[85] - A cash dividend of $0.05 per share of common stock was declared on May 20, 2025, and paid in full on June 6, 2025, totaling $0.63 million[87] - Jordanian and PRC subsidiaries are required to make appropriations to statutory reserves, which are not available for dividend distribution[86] NOTE 10 – STOCK-BASED COMPENSATION As of June 30, 2025, the company had 150,000 fully vested stock options and 907,840 Restricted Stock Units (RSUs) outstanding. Total stock-based compensation expenses decreased significantly year-over-year, with $1.57 million in unrecognized RSU expenses remaining - Stock options outstanding: 150,000 shares (fully vested) with a weighted average exercise price of $6.25 and a weighted average remaining life of 3.5 years[90] - RSUs outstanding: 907,840 shares with a weighted average grant date fair value of $3.00[93] - Unrecognized stock-based compensation expenses for RSUs: $1.57 million to be recognized through March 2027[92] - Total stock-based compensation expenses: $0.22 million for the three months ended June 30, 2025, a 52% decrease from $0.47 million in the same period in 2024[93] NOTE 11 – RELATED PARTY TRANSACTIONS The company maintains consulting agreements with two related parties: Yukwise Limited (wholly owned by the CEO) and Multi-Glory Corporation Limited (wholly owned by a significant stockholder), each incurring $75,000 in consulting fees for the quarter - Consulting fees to Yukwise Limited (wholly owned by the CEO): $75,000 for the three months ended June 30, 2025 and 2024[95] - Consulting fees to Multi-Glory Corporation Limited (wholly owned by a significant stockholder): $75,000 for the three months ended June 30, 2025 and 2024[96] NOTE 12 – CREDIT FACILITIES The company utilizes supply chain financing programs with customers for early payments, incurring early payment charges. It also has a $5.0 million banking facility with DBSHK, with $4.77 million outstanding as of June 30, 2025, at a weighted average interest rate of 5.7% - Early payment charge from supply chain financing: $0.29 million for the three months ended June 30, 2025, a decrease from $0.41 million in the same period in 2024[97] - DBSHK facility outstanding: $4.77 million as of June 30, 2025, compared to $4.51 million as of March 31, 2025[99] - Weighted average interest rate on DBSHK facility: 5.7% as of June 30, 2025, down from 6.3% as of March 31, 2025[99] NOTE 13 – NONCONTROLLING INTEREST The company holds a 51% equity interest in J&B and Jerash Newtech. J&B's business operations are being terminated, while Jerash Newtech is a new joint venture for a fabric facility. Noncontrolling interest increased to $57,735 as of June 30, 2025 - Noncontrolling interest: $57,735 as of June 30, 2025, compared to $22,860 as of June 30, 2024[33][103] - J&B International Limited (51% owned) approved termination of business operations and dissolution, expected to complete by April 2027[104] - Net profit (loss) generated by J&B: $11,160 for the three months ended June 30, 2025, a significant improvement from a net loss of $(43,485) in the same period in 2024[103] - Net profit (loss) generated by Jerash Newtech: $(1,048) for the three months ended June 30, 2025, compared to a net loss of $(354) in the same period in 2024[103] NOTE 14 – EARNINGS (LOSS) PER SHARE Basic and diluted earnings per share for the three months ended June 30, 2025, was $0.03, a significant improvement from a loss of $0.11 in the prior year, reflecting the company's return to profitability | Metric | 3 Months Ended June 30, 2025 ($) | 3 Months Ended June 30, 2024 ($) | | :------------------------------------------------- | :----------------------------- | :----------------------------- | | Net profit (loss) attributable to Common Stockholders | $318,676 | $(1,345,216) | | Basic and diluted earnings (loss) per share | $0.03 | $(0.11) | | Weighted Average Number of Shares (Basic & Diluted) | 12,699,940 | 12,294,840 | - 1,057,840 RSUs and stock options were excluded from the EPS calculation for the three months ended June 30, 2025, as their inclusion would have been anti-dilutive[105] NOTE 15 – SEGMENT REPORTING The company operates as a single reportable segment, primarily manufacturing outerwear. Revenue decreased by 3% year-over-year, with a notable shift in geographic sales: US sales decreased by 13%, while sales to China and Hong Kong surged by 306% - The company has one operating segment, primarily manufacturing outerwear, which accounted for approximately 81.7% of total revenue for the three months ended June 30, 2025[109] | Region | 3 Months Ended June 30, 2025 (Amount) ($) | 3 Months Ended June 30, 2025 (%) | 3 Months Ended June 30, 2024 (Amount) ($) | 3 Months Ended June 30, 2024 (%) | Change (YoY) | | :------------------ | :------------------------------------ | :-------------------------------- | :------------------------------------ | :-------------------------------- | :------------ | | United States | $32,052,018 | 81% | $37,034,398 | 90% | (13)% | | China and Hong Kong | $6,126,728 | 15% | $1,509,561 | 4% | 306% | | Germany | $537,047 | 2% | $1,120,063 | 3% | (52)% | | Jordan | $455,745 | 1% | $740,257 | 2% | (38)% | | Others | $457,770 | 1% | $531,437 | 1% | (14)% | | Total | $39,629,308 | 100% | $40,935,716 | 100% | (3)% | - As of June 30, 2025, 75.6% of long-lived assets were located in Jordan and 23.5% in Hong Kong[110] NOTE 16 – COMMITMENTS AND CONTINGENCIES The company has a remaining capital contribution commitment of approximately $0.6 million to Jiangmen Treasure Success by December 31, 2029. Additionally, it is involved in a legal dispute concerning PPE products, where management, based on legal advice, believes the chance of loss is remote and thus no accrual has been made - Remaining capital contribution commitment to Jiangmen Treasure Success: HKD 5 million (approximately $0.6 million) by December 31, 2029[111] - Jerash Garments is appealing an adverse court ruling in a case claiming PPE product inconsistencies, despite having won a prior related case for collection of proceeds. Management, based on external legal advice, concluded the chance of loss is remote[113][115] NOTE 17 – INCOME TAX Jordanian subsidiaries are subject to a 20% income tax rate plus a 1% social contribution. The company is also subject to the U.S. GILTI regime and has a $0.42 million Toll Charge payable within one year. The consolidated effective tax rate significantly increased to 50.4% for the three months ended June 30, 2025 - Jordanian subsidiaries' income tax rate: 20% plus a 1% social contribution, effective January 1, 2024[117] - The company is subject to the U.S. Global Intangible Low-Taxed Income (GILTI) regime and has a $0.42 million Toll Charge payable within one year[118] - Consolidated effective tax rate: 50.4% for the three months ended June 30, 2025, compared to (8.9%) for the same period in 2024[119] - Uncertain tax positions: $0.18 million as of June 30, 2025, with an estimated $0.24 million of unrecognized tax provision (including penalties and interest) potentially recognized in the next 12 months[119] NOTE 18 – SUBSEQUENT EVENTS On August 8, 2025, the Board of Directors approved a dividend payment of $0.05 per share - Dividend payment approved: $0.05 per share on August 8, 2025[120] Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial performance and condition for the three months ended June 30, 2025. It details the results of operations, liquidity, capital resources, and critical accounting estimates, highlighting key drivers of financial changes and future outlook Results of Operations Revenue decreased by 3% year-over-year to $39.6 million, mainly due to shipment delays caused by switching ports. However, gross profit increased by 31% and gross profit margin improved to 15% due to lower import logistic costs and better production planning. Net income significantly improved to $0.3 million from a net loss of $1.4 million in the prior year - Revenue decreased by approximately $1.3 million, or 3%, to $39.6 million for the three months ended June 30, 2025, mainly due to delayed shipments from switching ports[128] | Metric | 3 Months Ended June 30, 2025 ($) | 3 Months Ended June 30, 2024 ($) | Change (YoY) | | :-------------------------------- | :----------------------------- | :----------------------------- | :------------ | | Gross profit | $6,089,000 | $4,640,000 | 31% | | Gross profit margin | 15% | 11% | +4 ppts | | Net income (loss) | $323,000 | $(1,367,000) | 124% | - The increase in gross profit margin was primarily driven by better execution of logistic and production plans with import sea routes resuming to Aqaba Port in Jordan, shortening lead times and lowering costs[137] | Customer | 3 Months Ended June 30, 2025 (Sales) ($) | 3 Months Ended June 30, 2025 (%) | | :--------------- | :----------------------------------- | :------------------------------- | | VF Corporation | $25,156,000 | 63% | | New Balance | $4,796,000 | 12% | | Suzhou Unitex | $3,781,000 | 10% | - The U.S. imposed a 10% baseline tariff on imports from Jordan effective April 5, 2025, later modified to 15% on July 31, 2025, which could impact customer demand[132] Liquidity and Capital Resources Cash and restricted cash decreased by $7.56 million to $7.50 million as of June 30, 2025, primarily due to increased accounts receivable from delayed shipments and higher cash used in operating activities. Despite this, the company maintains a strong current ratio of 2.8 to 1 and relies on dividends from subsidiaries and supply chain financing for liquidity | Metric | June 30, 2025 ($) | March 31, 2025 ($) | | :-------------------------- | :-------------- | :--------------- | | Cash and restricted cash | $7,501,624 | $15,064,039 | | Net cash used in operating activities (3 months) | $(6,478,515) | $(2,200,948) | | Current Assets | $53,362,531 | $54,420,209 | | Current Liabilities | $18,751,869 | $19,818,770 | | Current Ratio | 2.8 to 1 | 2.7 to 1 | - The decrease in cash was mainly due to more shipments completed at the end of June 2025, with receivables collected in early July 2025 through supply chain financing programs[143] - The company participates in supply chain financing programs with major customers to receive early payments for approved sales invoices, subject to early payment charges, enhancing liquidity without traditional bank financing[147] - As of June 30, 2025, $4.8 million was outstanding under the DBSHK banking facility[149] - Statutory reserves of $0.4 million as of June 30, 2025, represent 0.66% of consolidated net assets and are not available for dividend distribution[160] Capital Expenditures Capital expenditures increased to $0.7 million for the three months ended June 30, 2025, primarily for plant and machinery. The company projects significant future capital expenditures of $1.3 million for fiscal 2026 and $7.8 million for fiscal 2027 to enhance production capacity and construct new facilities, funded by operations - Capital expenditures were approximately $0.7 million for the three months ended June 30, 2025, compared to $0.4 million for the same period in 2024, mainly for purchases of plant and machinery[161] - Projected capital expenditures: approximately $1.3 million for fiscal year ending March 31, 2026, and $7.8 million for fiscal year ending March 31, 2027, for further enhancement of production capacity and construction of dormitory and production facilities[163] - The company completed a dormitory and dormitory kitchen in fiscal year 2025 with approximately $10.6 million in capital expenditures[162] Off-balance Sheet Commitments and Arrangements The company has not entered into any material off-balance sheet commitments or arrangements, including financial guarantees or derivative contracts indexed to its own shares - The company has not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties[164] - The company has not entered into any derivative contracts that are indexed to its own shares or not reflected in its consolidated financial statements[164] Critical Accounting Estimates The company prepares its financial statements in conformity with U.S. GAAP, which requires judgments and estimates. No material changes have been made to accounting estimates in the past two years, and no critical accounting estimates have been identified - No material changes were made to the accounting estimates and assumptions in the past two years[165] - The company has not identified any critical accounting estimates[165] Recent Accounting Pronouncements This section refers to Note 3 for a discussion of recent accounting pronouncements and their potential impact on the company's financial statements - Refer to Note 3—Recent Accounting Pronouncements in the notes to the unaudited condensed consolidated financial statements for a discussion of recent accounting pronouncements[166] Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, Jerash Holdings (US), Inc. is not required to provide quantitative and qualitative disclosures about market risk - The company is not required to provide quantitative and qualitative disclosures about market risk as it is a smaller reporting company[167] Controls and Procedures This section addresses the effectiveness of the company's disclosure controls and procedures and internal control over financial reporting. Management concluded that disclosure controls were ineffective as of June 30, 2025, due to IT general control deficiencies, with remediation efforts ongoing Disclosure Controls and Procedures The CEO and CFO concluded that disclosure controls and procedures were ineffective as of June 30, 2025, primarily due to ineffective information technology general controls related to privileged user access and review. Remedial actions are in their preliminary stages and require further managerial review and fine-tuning - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were ineffective as of June 30, 2025[168] - The ineffectiveness was due to ineffective information technology general controls in the areas of privileged user access and the review of user access over certain information technology systems supporting financial reporting processes[169][171] - Remedial actions have been implemented, including a comprehensive review and strengthening of user authorization, access log control, password control, and documentation for IT systems, but are still in preliminary stages[172] - Despite material weaknesses, management concluded that the unaudited condensed consolidated financial statements fairly present the company's financial position, results of operations, and cash flows[173] Changes in Internal Control Over Financial Reporting Other than ongoing remediation efforts related to disclosure controls and procedures, there were no material changes in the company's internal control over financial reporting during the quarter ended June 30, 2025 - No material changes in internal control over financial reporting during the quarter ended June 30, 2025, other than ongoing remediation efforts[174] PART II - OTHER INFORMATION Legal Proceedings The company is not currently involved in any material legal proceedings, although it anticipates being involved in legal actions in the ordinary course of business, which could potentially incur material expenses or adverse outcomes - The company is not currently involved in any material legal proceedings[176] - The company anticipates involvement in legal proceedings, claims, and litigation arising in the ordinary course of business[176] Risk Factors As a smaller reporting company, Jerash Holdings (US), Inc. is not required to provide the information regarding risk factors - The company is not required to provide risk factor information as a smaller reporting company[177] Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities There were no unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities to report during the period - None to report[178] Defaults Upon Senior Securities This item is not applicable to the company for the reporting period - Not applicable[179] Mine Safety Disclosures This item is not applicable to the company for the reporting period - Not applicable[180] Other Information There is no other information to report under this item for the reporting period - None to report[181] Exhibits This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including corporate governance documents, employment contracts, various certifications (Sarbanes-Oxley Act), and Inline XBRL documents - Exhibits include Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Specimen Certificate for Common Stock, an Employment Contract, and certifications from principal executive and financial officers (pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002)[184] - Inline XBRL Instance Document and related taxonomy extension documents are also filed as exhibits[184] SIGNATURES Signatures The Quarterly Report on Form 10-Q was duly signed on behalf of Jerash Holdings (US), Inc. by Gilbert K. Lee, Chief Financial Officer, on August 13, 2025 - The report was signed by Gilbert K. Lee, Chief Financial Officer (Principal Financial Officer), on behalf of Jerash Holdings (US), Inc[189] - Date of signing: August 13, 2025[188]